American Tower boosts India presence with $1.2B site deal

Idea Cellular’s revenue from operations fell about 20% to Rs7,466 crore

Idea, the third-biggest Indian network operator by revenue and subscribers, said on Monday it suffered a net loss of 11.07 billion rupees in its second quarter ended September 30, which compared with a net profit of 915 million rupees in the same period a year ago but was less than the 11.25 billion-rupee loss expected on average by analysts.

Vodafone India has also agreed to sell its standalone tower business to ATC Telecom for an enterprise value of 38.50 billion rupees. Under deal, the company will add about 20,000 communications sites to its existing Indian portfolio.

The deal will make American Tower Corp one of the top players in the tower infrastructure market in India along with Bharti Infratel and Indus Towers. Further, SG&A associated with the assets is expected to be less than Rs 1 billion (approximately $10 million) for the first year.

American Tower will buy joint venture ATC Telecom Infrastructure.

In the event that the completion of the sale of the standalone telecom tower businesses precedes the completion of the proposed Idea-Vodafone, Vodafone India will receive $592 million, while Idea will get $615 million.

The Idea unit reported earnings before tax, depreciation and amortisation of Rs 194 crore for the first half of 2017-18.


The sale of tower business is subject to regulatory and other approvals.

Morgan Stanley was the financial adviser to Vodafone while DSP Merrill Lynch was the financial adviser to Idea Cellular.

Last year Vodafone made a painful $5bn to the firm's original $20bn investment in India.

The deal comes after Vodafone announced it was merging its loss-making Indian mobile phone business with Idea in March after failing to list the unit.

The Board has approved the execution of a share purchase agreement amongst ATC Telecom Infrastructure, the Company and ICISL.

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